NEWPORT BEACH, CA—Commercial property pricing looked much the same way at year's end as it did at the start. Green Street Advisors said Friday its Green Street Commercial Property Price Index was essentially unchanged in December. The index, which measures values across five major property sectors, declined by less than 1% across the course of last year.
“Property pricing as a whole ended the year where it started it, but performance in 2017 really depended on the type of property,” says Peter Rothemund, senior analyst at Newport Beach, CA-based Green Street. “Industrial, life science, medical office, and manufactured home parks all were up big last year, while mall values fell more than 10%. Everything else was somewhere in between.”
The performance of the apartment sector in December paralleled that of the Green Street CPPI as a whole. Although at 138.3 it's higher than the 126.0 the CPPI registered at Dec. 31, pricing for multifamily assets has seen little movement, per Green Street.
Over the past three months, apartment values have risen about 1%, and are up by the same percentage from a year ago. The aggregate CPPI declined by less than 1% over the past three months, just as it had done between December 2016 and last month.
No property type showed meaningful appreciation or depreciation from November. Only two—industrial with 2% and manufactured housing with 6%-evinced better than flat growth over the prior three months. The two sectors also did better than any others on a year-over-year basis, with industrial values up 9% and manufactured homes up 11%.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
